European executives at Nexperia have appeared in an Amsterdam court against its Chinese owner Wingtech Technology in a dispute over control that has disrupted automotive chip supply, reported Reuters. The clash intensified on 30 September, when the Dutch government temporarily took control of the semiconductor group, citing concerns that operations and intellectual property were being shifted to China. The intervention was later withdrawn in an effort to calm relations with Beijing. Nexperia produces s ...

Core Viewpoint - The ongoing legal dispute between Dutch chipmaker Nexperia and its Chinese owner Wingtech has led to significant operational challenges, including a shortage of chips for car manufacturers, as the Dutch government intervenes due to concerns over intellectual property transfer to China [1][2]. Group 1: Legal and Management Issues - Nexperia's European management is currently in a legal battle with Wingtech, which has resulted in the suspension of Wingtech's founder Zhang Xuezheng as CEO and the removal of Wingtech's control over Nexperia's shares [2][4]. - The Amsterdam Enterprise Court is set to hear arguments regarding allegations of mismanagement by Nexperia's senior European executives, with a decision on whether to conduct a full investigation pending [3]. Group 2: Financial Performance and Strategic Moves - Nexperia reported a profit of $331 million on sales of $2.06 billion in 2024, indicating a strong financial position despite the ongoing disputes [6]. - The company has ceased shipping wafers to China due to nonpayment issues and plans to invest $300 million to enhance packaging capacity in Malaysia to cater to non-Chinese customers [7]. Group 3: Market Context and Future Prospects - Wingtech argues that Zhang's management plans are aligned with the growth opportunities in China, the largest car market globally, which could benefit Nexperia as a subsidiary [5]. - The geopolitical landscape has seen various measures imposed and later retracted by the U.S., Dutch, and Chinese governments affecting Nexperia, highlighting the strategic interests at play [6].

Core Viewpoint - Nexperia's Chinese unit is seeking to secure local suppliers of silicon wafers and expand its packaging operations in China to stabilize production after supply disruptions caused by a corporate dispute [1][2]. Group 1: Supply Chain Developments - The Chinese unit of Nexperia has halted wafer deliveries from its Netherlands operation, leading to supply disruptions [2][3]. - The Chinese unit has secured sufficient Chinese-made silicon wafers to meet its entire output needs for one category of power chip by 2026, following the suspension of shipments from the Dutch unit [2]. - Beijing imposed export restrictions on Nexperia's finished products, which contributed to global chip shortages for automakers, but these restrictions were lifted in November, easing supply chain pressures [3]. Group 2: Corporate Governance and Legal Issues - The Dutch government took control of Nexperia from Wingtech Technology due to governance concerns, which initiated the supply disruptions [2]. - Legal proceedings regarding control over Nexperia remain unresolved, with Wingtech appealing to the Dutch Supreme Court against rulings that stripped it of effective control [5]. - A Dutch court is set to hear arguments on January 14 regarding a formal investigation into alleged mismanagement at Nexperia [5]. Group 3: Strategic Implications - Securing local suppliers would allow Nexperia's Chinese operation to continue chip manufacturing independently, reducing reliance on the Netherlands [4]. - Wingtech's chairwoman highlighted that the current fragmentation in the supply chain leads to duplicated investments and competitive risks, ultimately harming the company's interests [4].

SHANGHAI, Jan 9 (Reuters) - The Chinese unit of Netherlands-based Nexperia is selecting local firms to supply it with silicon ​wafers and is expanding domestic packaging capacity, Nexperia's Chinese owner ‌Wingtech Technology told financial magazine Caixin. In an interview published on Friday, which China's Caixin ‌said was conducted in late December, Wingtech's chairwoman Ruby Yang Mu said that the company expected most of the selection process to be completed in the first quarter. Reuters reported in ...

Dec 19 (Reuters) - The Chinese unit of Netherlands-based Nexperia has locked in supplies of silicon wafers from local firms to cover its entire 2026 production for one type of power chip, a document showed, after the Dutch firm ​stopped supplying the raw material in a corporate dispute. The development will allow the Chinese unit, which declared itself independent of ‌Nexperia's European management two months ago, to continue manufacturing Insulated-Gate Bipolar Transistor (IGBT) power chips and modules, ...

Core Viewpoint - Nexperia, a Chinese-owned Dutch chipmaker, is facing supply chain disruptions due to a standoff between its European operations and its Chinese packaging plant, prompting customers to seek temporary workarounds to alleviate chip shortages in the automotive market [1][2]. Group 1: Supply Chain Issues - A workaround is being developed by customers to bypass the conflict between Nexperia's European unit and its Chinese packaging facility, which is not a permanent solution and may not be feasible for smaller clients [2][3]. - The standoff was initiated by the Dutch government's seizure of Nexperia over concerns regarding technology transfer, leading to halted shipments of wafers from Europe to China [2][3][7]. Group 2: Impact on Automotive Market - The scarcity of Nexperia chips has negatively impacted the production of cars and parts, affecting major automakers and suppliers such as Volkswagen, Hella, Bosch, Aumovio, and Honda [2][4]. - The Chinese government has provided temporary relief by relaxing export controls on chips produced at the Dongguan plant, which may help alleviate some pressure on car manufacturers [5]. Group 3: Workaround Details - The workaround involves clients purchasing silicon wafers directly from Nexperia's factory in Hamburg and then transporting them to China for final packaging at the Dongguan plant [3][6]. - This approach treats Nexperia as two separate entities for production and packaging, addressing quality concerns while ensuring that both sides are compensated for their work [6]. Group 4: Current Operations - Nexperia halted wafer shipments to its Chinese subsidiary on October 26 due to nonpayment, and the Chinese arm is currently depleting its stockpiles of finished products [7]. - There are ongoing negotiations among various companies to secure exclusive production by sourcing wafers from Nexperia Europe for their own needs [7].

Company Overview - Siltronic has over 50 years of history in silicon technologies and is a supplier to top semiconductor producers[5,7] - The company has 4,400 employees worldwide and achieved sales of EUR 1.4 billion in 2024[3] - Siltronic reported a 26% EBITDA margin in 2024[5] - The company is positioned as the only Western-based wafer manufacturer[16] Market and Demand - Wafer demand is expected to continue growing at a CAGR of 4-5%, driven by 300 mm wafers[19] - Wafer consumption is expected to increase by 8% in 2025 due to AI momentum[21] - In 2024, the demand by segments was: Memory 24%, Logic 39%, and Power/Others 37%[25] Strategic Initiatives - Siltronic inaugurated a new 300 mm fab in Singapore, with an expected EBITDA margin above 50% mid-term[36,37] - The company has invested more than EUR 1 billion in Freiberg since 1995 to improve product mix[44] - R&D spending is planned at 4-5% of sales[48] Financial Outlook - Capex for 2025 is expected to be between EUR 360 and 380 million[67,76] - The company expects interest expenses in the ballpark of EUR 50 million in 2025[63] - Sales are expected to be mid-single digit below 2024, with an EBITDA margin between 22% and 24%[76] Sustainability - Siltronic aims for a 42% reduction in CO2 emissions by 2030 (base year 2021) and net zero by 2045[83] - The company targets a 60% share of renewable energy by 2030 and 100% by 2045[83]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to report positive results, with strong demand for high-performance computing and AI infrastructure driving growth [1] Company Overview - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) specializes in the production and sale of integrated circuits and semiconductor devices, providing fabrication and related services [1] - The company is recognized for its leadership in leading node manufacturing, which enables it to capture market share and benefit from a robust demand environment [1] Market Context - The company is a key supplier for major clients such as AMD and NVIDIA, indicating its significant role in the semiconductor industry [1] - There is a competitive landscape where certain AI stocks are perceived to offer greater upside potential with less downside risk compared to TSM [1]